How Corporate Social Impact and Corporate Responsibility programs affect your bottom line

A blog post update by Jenni (June 2018)

When implementing a Corporate Responsibility program for the first time, many companies can feel overwhelmed and intimidated. After all, creating any new corporate policy from scratch can require plenty of preparation, oversight, and implementation of metrics to measure success. However, studies have consistently shown that CSR programs are worth the time investment on the front end.

Some of the proven benefits of an effective CSR program include:

    • Increased revenue and profits
    • Increased loyalty from stakeholders such as consumers, suppliers, and investors
    • Increased employee engagement and retention rates
    • Decreased energy costs and improved efficiency with sustainable energy programs
    • Decreased environmental impact through donation programs
    • Increased visibility in the business community through public relations recognition, awards, and index listings
    • Healthier communities with more stable economies

Evidence of increased profits

    • Many studies have been conducted to measure the impact of CSR programs on a corporations profitability. Here are just a few:
    • In a review of over 200 academic studies on CSR, Oxford University found that 80% of these studies found an increase in stock prices.
    • A study conducted by London and Harvard Business Schools shows that beginning in 1997, business analysts realized a perception shift on the importance of CSR. Since then, corporations with CSR policies have seen a boost in stock prices.
    • In a survey of 556 US corporations, 74% of respondents said their companys bottom line can be improved with CSR programs.
    • A 2003 in-depth analysis 52 prior studies on this topic found a positive relationship between both CSR and environmental responsibility programs with profitability.

Other Positive Benefits

More visibility to investors: Certain corporate indexes are only available to corporations with aggressive CSR programs. For example, FTSE4Good indexes corporations which have proven their dedication to ethical environmental, social, and governance practices. The Dow Jones Sustainability Index is also used by investors who want to partner with ESG-friendly businesses.

Greater attractiveness to investors: Studies have shown the number of investors who value socially responsible businesses is increasing. For example, this 2016 report shows growth over time in investments made in corporations with CSR programs. Additionally, Goldman Sachs reported last year that companies with CSR programs attract more investors and long term stability.

More efficient operations: A review of over 200 academic studies on corporations with CSR programs found that 88% of these corporations experienced improved operational performance. Additionally, 90% of the corporations experienced lower costs at the organizations.

SocialBox.Biz can help your corporation set up locally focused, sustainable CSR programs to support your profit margins and surrounding community. Our programs are easy to implement into your everyday operations, and support environmental and social causes. We can also coach your executives on how to measure short term and long term impact of your CSR programs and leverage this impact in your PR strategy.


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